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Glossary

Average transaction value

Metrics and measurement

Average order value (AOV) is the average worth of a single purchase, revenue divided by the number of receipts or orders.

It reports what happened at the till, while the reasons why it happened sit in the signals upstream: footfall, the ratio of visitors to buyers, dwell time. Those are the signals you can act on the following week.

An example

A chain's head office measures sign-ups, attendance and satisfaction for its channel training; the shop measures average order value and reordering. Each side measures what it controls, the stretch joining the two measures has no owner, and that is precisely where the money leaks.

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